Chinese gold purchases.

Discussion in 'Economy' started by william the wie, Aug 18, 2011.

  1. william the wie
    Offline

    william the wie Gold Member

    Joined:
    Nov 18, 2009
    Messages:
    7,624
    Thanks Received:
    721
    Trophy Points:
    175
    Ratings:
    +1,841
    They are increasing so where does the money come from to maintain the housing bubble? At the last count I saw, a minimum of eight ghost cities had been verified from orbit in China. All of its economic growth for several years has been in construction. So if money is diverted from making unneeded and often unusable buildings to building private gold hordes what happens to the housing bubble?
     
  2. Trajan
    Offline

    Trajan conscientia mille testes

    Joined:
    Jun 17, 2010
    Messages:
    29,048
    Thanks Received:
    4,751
    Trophy Points:
    48
    Location:
    The Bay Area Soviet
    Ratings:
    +4,756
    probably just build more when they start to crumble or pay/finance people to fix them......in their command economy, they will put out whatever #'s they think they need to to hold on to power. the malls and office bldgs that are empty is 'growth', :lol:.....I have a feeling when they fall and they will eventually we will find out those 9 and 10% gdps were all bunk, by half in real terms.
     
  3. Toro
    Offline

    Toro Diamond Member

    Joined:
    Sep 29, 2005
    Messages:
    51,502
    Thanks Received:
    11,182
    Trophy Points:
    2,030
    Location:
    The Big Bend via Riderville
    Ratings:
    +26,038
    Same thing that happens to all housing bubbles - it ends badly.
     
  4. idb
    Offline

    idb Gold Member

    Joined:
    Dec 26, 2010
    Messages:
    10,696
    Thanks Received:
    1,163
    Trophy Points:
    245
    Location:
    Arrowtown, New Zealand
    Ratings:
    +2,885
    It'll all become clear in China's end of year financial statement I'm sure.

    It'll list the USA as an asset - not a particularly high value one but an asset of China's nevertheless.
     
  5. william the wie
    Offline

    william the wie Gold Member

    Joined:
    Nov 18, 2009
    Messages:
    7,624
    Thanks Received:
    721
    Trophy Points:
    175
    Ratings:
    +1,841
    This is going to get rough.
     

Share This Page